OMG. NFTs. WTF?

Non-fungible tokens, or NFTs, have been making headlines in the art world in recent years for their potential to revolutionize the way we protect, value, and sell digital art. But for those who are unfamiliar with the technology, it may be hard to understand exactly what NFTs are and why they are so significant. In this article, we will explain the basics of NFTs, explore their emergence in the art world, and detail an example of their value through the historic sale of "Everydays: The First 5000 Days" by digital artist Beeple.

First, let's define what NFTs are. Simply put, NFTs are unique digital certificates of authenticity that prove ownership and provenance of a digital artwork. They are stored on a decentralized and tamper-proof blockchain ledger, meaning that every transaction of an NFT is recorded and can be tracked. This creates a transparent and immutable record of an artwork's history, which can be used to increase its value.

The emergence of NFTs in the art world has been significant in recent years as it provides a solution to a problem that has long plagued the digital art industry: the ease of duplication and distribution. As digital artist and pioneer of NFTs, Mad Dog Jones, states, "NFTs allow artists to prove that they are the creators of a digital artwork and that they own the rights to it. It's the only way to prove authenticity in the digital world."

One of the most notable examples of the value of NFTs in the art world is the sale of "Everydays: The First 5000 Days" by digital artist Beeple. The piece, which is a collage of images created by the artist over a period of 13 years, was sold as an NFT through the auction house Christie's in March 2021 for a record-breaking $69.3 million, making it the most expensive NFT ever sold and one of the most valuable digital artworks of all time.

      "Everydays: The First 5000 Days"

As traditional institutions like Christie's embrace NFTs, it further legitimizes the technology and showcases the potential for new revenue streams for artists and new opportunities for art collecting and investment. As Noah Davis, Head of Sales, Post-War and Contemporary Art at Christie's, states, "The sale of Beeple's NFT is a turning point in the mainstream adoption of this technology in the art world and a sign of a new era in the way art is created, collected and valued."

The sale of "Everydays: The First 5000 Days" is not only a demonstration of the high value that can be placed on digital art when sold as an NFT, but it also highlights the growing interest in NFTs from traditional art institutions such as Christie's. This legitimizes the technology and showcases the potential for new revenue streams for artists and new opportunities for art collecting and investment.

However, the true value of NFTs goes beyond the financial aspect. As John Watkinson, a technology consultant for the Arts Council England, states, "NFTs are crucial for preserving and promoting the value of digital art for future generations. They provide proof of ownership and authenticity, and help ensure that digital art is valued and respected in the same way as traditional art forms."

In conclusion, NFTs have the potential to revolutionize the art world by providing a new way to protect and increase the value of digital art. As the world becomes increasingly digital, NFTs are a necessary tool for preserving and promoting the value of digital art for future generations. The adoption of NFTs by traditional institutions such as Christie's further legitimizes the technology and opens up new opportunities for artists, collectors, and investors.